Amazon Expands Fresh Grocery Delivery Service to Non-Prime Members in Select U.S. Cities
In a move aimed at increasing accessibility, Amazon announced today that it will be opening up its Fresh grocery delivery service to customers who do not have a Prime membership. Previously, the service was exclusively available to Amazon Prime members, who pay an annual fee of $139 for various benefits, including free delivery on eligible items.
Users in a dozen cities, including San Francisco, Boston, Nashville, and Austin, will now be able to access Amazon Fresh and have groceries delivered right to their doorstep. However, non-Prime members will have to pay a delivery fee based on the value of their order. Orders under $50 will incur a $13.95 fee, orders between $50 and $100 will have a $10.95 fee, and orders over $100 will carry a $7.95 delivery fee.
Amazon launched Fresh in 2007, making it the company’s first venture into the online grocery market. Over the years, it has expanded its presence in the industry, acquiring Whole Foods for $13.7 billion in 2017, operating a chain of Fresh supermarkets, and introducing Go cashierless convenience stores.
However, Amazon has faced challenges in integrating Fresh and Whole Foods and finding a format that resonates with customers while being economically viable. As part of a recent review of expenses, CEO Andy Jassy announced the closure of some Fresh and Go stores, as well as a pause in further expansion until a successful format is identified.
Earlier this year, Amazon also removed the previous perk of free delivery on Fresh grocery orders over $35 for Prime members. Instead, the company began charging delivery fees on orders under $150.
Despite these setbacks, Amazon is determined to make significant changes to its grocery business. The company plans to roll out Fresh delivery for non-Prime members nationwide and offer products from Whole Foods and other grocers. Additionally, it aims to improve the online shopping experience by better integrating Whole Foods and Fresh platforms, addressing a major customer complaint.
In further efforts to enhance the Fresh brand, Amazon introduced a revamped format for its grocery stores. The updated format features an in-store Krispy Kreme kiosk and an expanded selection of products. The new format is being unveiled at an Oak Law, Illinois location as part of the company’s ongoing efforts to address customer concerns regarding the shopping experience at Fresh stores.
With these changes and innovations, Amazon is hoping to solidify its position in the online grocery market and strengthen its reputation for convenient and efficient grocery delivery services. As the company continues to prioritize customer feedback and adapt its approach, more updates and improvements are expected in the coming months.